A better way to put that would be to say the budget is essentially balanced in the short term.

Unfortunately, the state's pension obligations to its workers and teachers are not short term.

That's why a report by the California State Teachers Retirement System - STRS - offers a needed jolt of reality at a time some, especially in the Democrat-controlled Legislature, may think it's again open season on the budget.

The trust fund that provides pensions has a $64 billion hole in it. According to the internal study, prepared in response to a legislative resolution, STRS will need a $4.5 million per year injection to become fully solvent over the next three decades. That's a 75 percent increase in the $6 billion total annual payment being made today by teachers, school districts and the state (last year, STRS paid out $10.7 billion in benefits).

STRS, established 100 years ago this year, provides retirement, disability and survivor benefits for California's 856,360 prekindergarten through community college educators and their families.

In addition to money from the state, from local school districts and teachers, STRS is highly dependent on investment earnings. In the last quarter century, 58 percent of the fund's revenue came from investments. Those earnings took a drubbing during the Great Recession.

Unlike the state's biggest public retirement system, the California Public Employees Retirement System (which has the power to take money from the state treasury as it sees fit), STRS must receive specific appropriations from the Legislature.

Going to lawmakers with hat in hand is a bit riskier than showing up with an invoice. And, while STRS isn't in imminent danger - some say it won't go broke for decades - its troubles will grow if not dealt with.

In fact the LAO's Mac Taylor offered up a mild, if unmistakable, scolding to the governor for ignoring "huge unfunded liabilities associated with the teachers' retirement system and state retiree health benefits" in his new budget.

The idea is to not let the deficit widen.

That requires lawmakers and STRS's managers not sit back and wait for a crisis.